Environmental, Social and Corporate Governance ESG in Sports

Description

Summary

Environmental, Social and Corporate Governance (ESG) is a set of criteria that are used to judge organisations in how they make a positive contribution to the world and society. Since the 60s, there has been more of a conscious effort for consumers and investors to get behind brands that care about issues other than simply making profits. Because consumers and investors are more informed than ever, companies are increasingly making an effort to consider ESG issues in their business strategy.

The environmental factors look at the organisation’s environmental impact and its ability to mitigate various hazards that could have a negative impact on the natural world. Every company consumes energy as well as resources, and as a result, it has an impact on and is influenced by the environment.

The social element looks at how the company interacts with other businesses and communities, as well as how it views social issues such as diversity, inclusiveness, labour relations, and human rights. Internal affairs and the organisation’s connections with its primary stakeholders, such as employees and shareholders, are the focus of the Governance component. Internal policies, controls, and procedures are used to comply with the law and suit the needs of the organisation.

When ESG factors were first brought up in business discussions, many organisations ignored them, thinking that it would hurt profits to focus on aspects that don’t directly impact the business. However, as the years went by, more research into how ESG can affect an organisation revealed the positive benefits an ESG strategy can bring.

The sports industry is one of the many industries around the world that is starting to take notice of ESG factors. Sports organisations are increasingly looking at how they can have a positive impact on the environment and society. By focusing on social, environmental and governance factors, sports organisations can improve their standing with the fans, gain support from new consumers and investors and help to improve their chances of long-term success.

To adopt an ESG strategy, organisations need to have a process for identifying, analysing and implementing ESG issues and risks. Identifying ESG factors works in a similar way to a risk assessment, looking at which areas of the business are affecting by specific issues and also evaluating the level of their impact. An organisation must then consider what part of their business strategy can be adjusted to change the kind of impact they have.

The environmental impact of sports shouldn’t be understated. Although it does not pollute nearly as much as some other industries, sports organisations still generate their share of greenhouse gases and also produce a lot of waste while using up plenty of resources. If sports are to continue to thrive in a world that is increasingly focused on conserving the environment, sports organisations will need to look at how they can reduce their environmental impact.

In terms of their impact on society, few other industries are as influential as the sports industry. Billions of people around the world watch sports, and they’ve been a huge part of our culture since the start of civilisation. With people looking up to athletes as their heroes, sports stars and organisations can have a big impact on our behaviour as a society. As a result, it’s important that these athletes and organisations stand for progress and help shine a light on social issues such as gender and racial equality as well as human rights. Sports can have an enormous positive benefit on society, and sports organisations have a responsibility to help their local communities.

Corporate governance involves the hierarchy and decision-making process of an organisation. Every company has a set of rules, processes and procedures that govern how the organisation operates and determine the direction it takes. These processes involve balancing the needs of the employees, shareholders, executives, government and the general public. Ethics, compliance with regulations and the overall structure are all important factors to consider for sports organisations and can have a large impact on the success of an organisation.

ESG factors can have a range of different impacts on effects on organisations as well as on society and the planet. One of the biggest driving forces behind the increase in companies implementing ESG into their strategy has been the fact that it can increase company performance. Studies have shown that an ESG strategy has a positive effect on revenue, finding and retaining talent and more. One thing that consumers and investors need to be aware of is that companies can mislead them over their ESG practices. Greenwashing is a common tactic used by companies to appear sustainable without actually putting in the effort to change their business practices. Major greenwashing scandals have shaken the public’s trust in big companies, and more needs to be done to ensure that organisations can’t lie about ESG factors.

Since the 60s, when consumers and investors first started to pay attention to ESG factors, they’ve become much more commonly used and analysed by industry experts as well as governments and the public. As they’ve become an integral part of business strategy for many organisations in sports and other industries, the way they’re used as well as the factors themselves, have changed a lot. The future of ESG will most likely involve an increasing focus on globalisation and how it impacts ESG strategy as well as cybersecurity and carbon credits.

What You’ll Learn

Throughout the course, you’ll learn the following subjects:

· What are environmental, social and governance factors and how do they affect the sports industry

· How to identify ESG factors

· How companies assess and evaluate ESG factors

· The process of integrating ESG factors into a business strategy

· Energy efficiency in the sports industry

· Reducing waste in sports

· How mega events like the Olympics affect the environment

· Equal opportunities in sports

· The sports industry and human rights

· How sports can benefit the local community

· Business ethics in sports

· Compliance and regulations in the sports industry

· What is shareholder democracy, and what does it mean for the sports industry?

· How FIFA has committed to offsetting and reducing carbon emissions

· How World Sailing is working to protect and restore coral reefs and marine life

· What are bioplastics, and how are they being used to make hockey more sustainable

· How the International Tennis Federation is looking to increase the number of female coaches as well as boosting the number of women in leadership roles

· How the French National Olympic Committee is addressing social issues for the upcoming 2024 Paris games

· Social issues at the 2022 Qatar FIFA World Cup

· The impacts and effects of ESG

· How ESG factors influence decisions making and company performance

· What is greenwashing, how can companies avoid it, and how can investors and consumers spot it

· What the future holds for ESG in the sports industry

· How cybersecurity is affecting the way businesses in the sports industry plan their strategy

· What are carbon credits, and why is carbon offsetting starting to gain traction in the sports industry

Words from the Author, Saam Momen:

I have a true passion for teaching! I have proudly taught university courses in Switzerland, USA and Brazil. My career spans over 15 years in the sporting industry with jobs at the London Olympic Bid Committee, UEFA, CSM and TEAM Marketing. I possess a Master Degree in Sports Management and an Executive Education diploma at Harvard Business School on The Business of Entertainment, Media and Sports. I hope that throughout this course you are able to have a wonderful learning experience! Please do not hesitate to reach out should you have any queries.

Why Choose This Course

This course has been developed to help you understand ESG factors and their role in the sports industry. By the end of the course, you should know what environmental, social and corporate governance factors are as well as specific examples that affect the sports industry. As the sports industry develops, these factors have become even more important than ever, and most experts believe that ESG will play a major role in business decisions for the foreseeable future. As you progress through the course, you’ll be able to learn more about how ESG affects sports, as well as learn from real-world examples.

If you plan on working in the sports industry, particularly in a management position, knowledge of environmental, social and corporate governance risks and issues is essential. This course is an excellent introduction to the subject, helping you understand exactly what ESG factors are and why they’re so important to organisations, consumers, investors and employees. No matter what kind of organisation you end up working for and what level of the sports industry you’re involved in, ESG will likely have a big impact on your career.

The sports industry has changed a lot in a very short space of time as new technologies have helped it to develop and reach new audiences all over the world. As the world has changed, so have our attitudes towards businesses and how they operate. Modern companies are expected to bring a positive change to the world, and many consumers will avoid those that are harmful or that fail to make a difference. In the future, these effects could be magnified as climate change and resource management become even more important.

Of course, ESG factors are important in all industries, not just in sports. To that effect, this course is helpful in that it gives a general view of what ESG factors are. Although you’ll see plenty of sports-related examples, the course presents ESG in a balanced light, allowing you to see the advantages and potential disadvantages that face organisations looking to utilise ESG in their business strategy.

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